Prius not so hot without full federal tax credit, Toyota offers incentives to move units
Parts of this story make sense: now that the federal tax credits for the Prius have been reduced, customers aren't as eager to buy the world's most famous hybrid. To encourage shoppers, Toyota offered various incentives around the country – 3.9 percent financing options, monthly payments as low as $249, etc. – last month.
And parts of this story don't make sense: the deals were offered last month and we just hearing about it now.
While the incentives were not a nationwide deal (just seven of Toyota's 12 U.S. sales regions had some sort of special offer), I wonder why this wasn't publicized more while the offers were on the table. Does Toyota not want to admit the Prius isn't selling as well as they'd hoped (the stated goal is 150,000 a year in America. Just under 110,000 were sold in 2006 and 2005)? Was this a test program while the company tries to get the federal tax credit extended?
Whatever the case, January sales figures were up compared to last year, but 8,299 vehicles sold last month means a long way go for the rest of the year.
Source: Richard Truett / Autonews (subs req'd)]
Reader Comments (Page 1 of 1)
john1701a 12:09PM (2/06/2007)
Huh?
The US sales goal for Prius in 2006 was 100,000. And that expectation was exceeded, with a total of over 106,000 actually sold.
The goal for 2007 has been raised to 150,000. So there is nothing to admit.
The offering of automaker incentives makes Prius that much more of a mainstream vehicle. It's a natural step forward with the phase-out of government incentives. After all, it's normal for other vehicles to provide offers like reduced financing.
JOHN
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1985 Gripen 9:55PM (2/06/2007)
Also keep in mind that California has already given out all of it's carpool passes this year. So in California (I'm guessing the largest Prius market) that's one less incentive to buy a Prius.
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Ralph 12:45AM (2/07/2007)
Besides the reduction in federal tax credits and the end of the carpool lane stickers in CA there are those who have heard about the next generation Prius with even better mileage and (hopefully) plug-in capability.
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Doug R 10:35AM (2/08/2007)
Buy what you want, it's a free country (at least for now), but nobody deserves tax breaks over everyone else just for buying a hybrid. Normally you folks throw a party for tax increases and go on the warpath over tax breaks. Can you say "hypocrite"?
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Sebastian 11:12AM (2/08/2007)
Doug,
Would you like an invite to my next "Hooray For Taxes!" party? I try to throw one every month or so.
Sebastian
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Doug R 12:38PM (2/08/2007)
I'd love to! Reading these blogs tells me there are quite a few who enjoy that sort of thing. I had one socialist/communist intellect tell me that we should "Expose it. Then tax it til it dies!". This was in regard to the oil industry. Although after a tax increase I probably couldn't afford to party with you, but thanks for inviting me anyway.
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geoff p 2:08PM (2/16/2007)
SUVs over a certain weight (5000 lbs?) were also given a tax break. There are countless tax breaks out there, you have plenty to choose from if you want to really get bothered.
I bought a hybrid not even believing it would have a tax benefit, so that didn't impact my decision making. I was happy to see that I'll have about a $5000 refund.
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